In '23, the company achieved operating income of 1,725 billion yuan (+8.18%); net profit attributable to mother of 197 million yuan (-37.19%); deducted net profit of 176 million yuan (-33.81%); sales/management/R&D expense ratios of 3.08%/11.61%/9.81%, respectively, and R&D expenses of 169 million yuan (+0.50%). In Q1 to Q4 of 2023, revenue for the single quarter was 3.83/4.61/447/434 million, respectively, and net profit to mother was 0.58/0.56/0.40/0.43 billion yuan, respectively. In 2024, Q1's revenue was 377 million yuan (-1.56%), including product and service revenue of 85 million yuan (+5.45%) in the pharmaceutical research stage, product and service revenue of 292 million yuan (-3.45%) during drug development and commercialization, and net profit of 49 million yuan (-14.32%).
There is a new pattern of two-way business drainage development, and the customer pipeline continues to expand. Among them, revenue from products and services in the pharmaceutical research stage was $345 million (+12.13%); revenue from products and services in the drug development and commercialization stage was $1,380 million (+7.24%). The number of active customers in 23 years reached 744, with revenue of 1,659 billion yuan (+13.24%) from active customers; of these, the number of customers with large orders of more than 5 million was 75, with a year-on-year increase of 25%; orders from MNC customers amounted to 399 million yuan (-13.82%), and revenue from small to medium biomedical companies and other customers was 1,326 billion yuan (+15.19%). By the end of 2023, the company had more than 2,200 early (pre-clinical to clinical phase II) projects; 62 clinical phase III and commercial projects.
Production capacity and efficiency have been released, and the CDMO business is growing strongly. On the production side, the company strengthened lean management to improve work efficiency and control costs. The annual production batch of Huishi increased by 31.07% compared to 2022, the production capacity coverage rate was 62.47%, and the production cost of a single batch decreased by 3.66%. In 23, American Yakshi's process R&D center in West Chester was officially opened. The integrated service platform between China and the US was further improved to enhance the delivery capacity of American Yakstone's clinical-stage GMP projects and support the continuous development of CDMO's business. In 2023, the company's CDMO business achieved revenue of 835 million yuan (+22.90%).
Profit forecast and rating: We expect the company's revenue for 2024-2026 to be 19.71/22.52/25.88 billion yuan, up 14.3%/14.2%/14.9% year on year; net profit to mother will be 221/2.49/ 279 million yuan, respectively, up 11.8%/13.0%/12.1% year on year. Give it an “gain” rating.
Risk warning: industry competition intensifies, capacity construction falls short of expectations, customer expansion falls short of expectations